It is common in most towns that major department stores are located next to each other. Provide an intuitive explanation of this common finding.
What will be an ideal response?
Location is one of the most important factors when consumers decide where to shop. It is natural that department stores tend to locate where the population is densest. This means that department stores are trying to increase their market shares by positioning themselves where the largest number of prospective customers live.
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A larger budget surplus
a. raises the interest rate and investment. b. reduces the interest rate and investment. c. raises the interest rate and reduces investment. d. reduces the interest rate and raises investment.
Refer to the figure above. Over the $5-$6 range, the elasticity of demand using the midpoint formula is:
A. 0.22. B. 1.00. C. 0.88. D. 1.16.
The long-run marginal cost is the additional cost incurred by the firm when producing one more unit of output, holding the amount of capital constant.
Answer the following statement true (T) or false (F)
Answer the following statements true (T) or false (F)
1. When you use money to purchase groceries, money is functioning as a store of value. 2. Money performs its function as a store of value very well, because it protects one against the erosion of purchasing power from inflation. 3. With token money, the face value is greater than the intrinsic value. 4. The M1 money supply is composed of currency, checkable deposits, and savings deposits. 5. Credit card balances are part of money supply M2.